CGM Supply Chain & Vendor Management 2

Question 1

Which performance metric measures the percentage of customer orders fulfilled completely and on time?

Accepted Answer

Perfect Order Rate

Answer

Inventory Turnover Ratio

Answer

Days Sales Outstanding

Answer

Gross Margin Return on Inventory

Question 2

When negotiating long-term supply agreements, a general manager should prioritize which of the following to protect the organization from price volatility?

Accepted Answer

Price escalation and de-escalation clauses

Answer

Net-30 payment terms

Answer

Extended warranty provisions

Answer

Vendor-managed inventory arrangements

Question 3

A make-or-buy analysis helps a general manager decide:

Accepted Answer

Whether to produce a product or service internally versus outsourcing it

Answer

Which raw materials to substitute to reduce costs

Answer

How to allocate capital between departments

Answer

When to liquidate excess finished goods inventory

Question 4

Safety stock is held primarily to:

Accepted Answer

Buffer against demand uncertainty and supplier lead-time variability

Answer

Reduce the unit cost of purchased goods

Answer

Meet seasonal peak demand forecasts

Answer

Satisfy government stockpile requirements

Question 5

Which supply chain tier refers to the direct suppliers that provide materials or components to a manufacturer?

Accepted Answer

Tier 1 suppliers

Answer

Tier 3 suppliers

Answer

Tier 2 suppliers

Answer

Tier 0 suppliers

Question 6

A general manager conducting a total cost of ownership (TCO) analysis for vendor selection would include all of the following EXCEPT:

Accepted Answer

Vendor's internal profit margin

Answer

Purchase price of goods

Answer

Incoming freight and handling costs

Answer

Quality inspection and rework costs

Question 7

Electronic Data Interchange (EDI) in supply chain management primarily enables:

Accepted Answer

Automated machine-to-machine exchange of business documents between trading partners

Answer

Real-time tracking of delivery vehicles via GPS

Answer

Digital payment processing through banking networks

Answer

Online vendor performance evaluations